b) & c) pleaae

Assume you are the management accountant for the Foleo Group. After her meetings with the various business units, Tracey Chen has identified a number of opportunities for the organisation to improve its sustainability performance. One such opportunity is Robyn Smith's suggestion for moving the manufacturing operations of Foleo Fones and Accessories off-shore to address the local residents' concerns. Robyn had done some research and has supplied Tracey with the below data relating to the relocation of Foleo's manufacturing plants offshore (specifically to Guangzhou in southern China). Australian Plants Guangzhou Plante Annual Direct Labour Costs $1,953,3152 $1,074,3232 Annual Direct Materials Costs $2,976,480 $1,785,888 Annual operational expenses (Variable Manufacturing Overheads) $343,440 $120,204 Annual waste produced from operations requiring disposal 710 tonnes p.ae 825 tonnes p.a Cost of waste disposal per kg $120 per tonne $110 per tonne Annual fixed manufacturing overheads- $625,000 $375,000 Average / estimated delivery time for SliFones and Accessories 5 working days. 35 working days Estimated Co, emissions produced by operations per hour of 260 grams per 430 grams per hour operation hour Number of employees required by manufacturing operations 1,450 1,250 Number of working weeks per year per employees 40 weeks 50 weeks Robyn has advised Tracey that the expected relocation costs to Guangzhou would amount to $1,500,000 but that some of these costs could be offset with the sale of Foleo's current manufacturing assets and the sublease of the plants (the amount of which, she has estimated as an inflow of $950,000 at the time of the relocation). As mentioned above, the relocation of Foleo's manufacturing operations will mean the closure of the Australian plants, which will result in all factory workers currently employed at the various Foleo plants being laid off. More than half of these workers have been with Foleo for at least 10 years and many of them have not claimed their accrued long service and annual leave. Tracey has calculated that these workers' entitlements, which must be paid on their termination, will amount to $6,400,000. Whilst the cost savings look good on paper, Tracey has some concerns about the merit of this proposal in terms of its alignment with the Foleo Group's overarching objectives and the newly formulated sustainability objectives. She is also concerned about relinquishing control over the manufacturing process and how this will impact the quality of the products being produced and ultimately customer satisfaction. Tracey has asked you to analyse this data and report back to her with a recommendation that she can take to a meeting with Robyn Smith and Allan Raymond for further discussion. Costs / Benefits Maintaining Australian Operations Relocating Operations to China Year - Years 1-5 TOTAL Year 0 Years 1-5 TOTAL 1,500,000 Initial outlay for the relocation of operations to China Estimated inflow of funds from sale of assets and subleasing plants Annual Direct Labour Costs 950,000 + + 1,953,315 1,074,323 2,967,480 1,785,888 ttt 343,440 120,204 t Annual Direct Materials Costs Annual operational expenses (Variable Manufacturing Overheads) Annual waste produced from operations requiring disposal Annual fwed manufacturing overheads Payout of entitlements to Australian factory workers 85,200 625,000 90,750 375,000 6,400,000 64,000,000 TOTAL NET FINANCIAL COST/(BENEFIT) 12,383,435 64,550,000 3446,165 67,996.165 le (b) Using the non-financial data provided by Robyn Smith, summarise and briefly discuss the environmental and social costs/benefits over the next five (5) years of both options. Then rank the two (2) options based on the non-financial benefits or costs you have discussed. (HINT: Include only the non-financial for physical) measures in this analysis and explain whether your suggestions are costs or benefits to society or the environment. Include at least four (4).) (1 mark) (c) Identify the stakeholders who would be affected if the above proposal to relocation of the Foleo Group's manufacturing operations was approved and explain how each would be impacted. (HINT: You should identify at least four stakeholders and explain the impact on each of them.) (0.8 mark) (Award 0.2 mark for each pair of identified stakeholder and impact explanation up to a maximum of 0.8 mark) Assume you are the management accountant for the Foleo Group. After her meetings with the various business units, Tracey Chen has identified a number of opportunities for the organisation to improve its sustainability performance. One such opportunity is Robyn Smith's suggestion for moving the manufacturing operations of Foleo Fones and Accessories off-shore to address the local residents' concerns. Robyn had done some research and has supplied Tracey with the below data relating to the relocation of Foleo's manufacturing plants offshore (specifically to Guangzhou in southern China). Australian Plants Guangzhou Plante Annual Direct Labour Costs $1,953,3152 $1,074,3232 Annual Direct Materials Costs $2,976,480 $1,785,888 Annual operational expenses (Variable Manufacturing Overheads) $343,440 $120,204 Annual waste produced from operations requiring disposal 710 tonnes p.ae 825 tonnes p.a Cost of waste disposal per kg $120 per tonne $110 per tonne Annual fixed manufacturing overheads- $625,000 $375,000 Average / estimated delivery time for SliFones and Accessories 5 working days. 35 working days Estimated Co, emissions produced by operations per hour of 260 grams per 430 grams per hour operation hour Number of employees required by manufacturing operations 1,450 1,250 Number of working weeks per year per employees 40 weeks 50 weeks Robyn has advised Tracey that the expected relocation costs to Guangzhou would amount to $1,500,000 but that some of these costs could be offset with the sale of Foleo's current manufacturing assets and the sublease of the plants (the amount of which, she has estimated as an inflow of $950,000 at the time of the relocation). As mentioned above, the relocation of Foleo's manufacturing operations will mean the closure of the Australian plants, which will result in all factory workers currently employed at the various Foleo plants being laid off. More than half of these workers have been with Foleo for at least 10 years and many of them have not claimed their accrued long service and annual leave. Tracey has calculated that these workers' entitlements, which must be paid on their termination, will amount to $6,400,000. Whilst the cost savings look good on paper, Tracey has some concerns about the merit of this proposal in terms of its alignment with the Foleo Group's overarching objectives and the newly formulated sustainability objectives. She is also concerned about relinquishing control over the manufacturing process and how this will impact the quality of the products being produced and ultimately customer satisfaction. Tracey has asked you to analyse this data and report back to her with a recommendation that she can take to a meeting with Robyn Smith and Allan Raymond for further discussion. Costs / Benefits Maintaining Australian Operations Relocating Operations to China Year - Years 1-5 TOTAL Year 0 Years 1-5 TOTAL 1,500,000 Initial outlay for the relocation of operations to China Estimated inflow of funds from sale of assets and subleasing plants Annual Direct Labour Costs 950,000 + + 1,953,315 1,074,323 2,967,480 1,785,888 ttt 343,440 120,204 t Annual Direct Materials Costs Annual operational expenses (Variable Manufacturing Overheads) Annual waste produced from operations requiring disposal Annual fwed manufacturing overheads Payout of entitlements to Australian factory workers 85,200 625,000 90,750 375,000 6,400,000 64,000,000 TOTAL NET FINANCIAL COST/(BENEFIT) 12,383,435 64,550,000 3446,165 67,996.165 le (b) Using the non-financial data provided by Robyn Smith, summarise and briefly discuss the environmental and social costs/benefits over the next five (5) years of both options. Then rank the two (2) options based on the non-financial benefits or costs you have discussed. (HINT: Include only the non-financial for physical) measures in this analysis and explain whether your suggestions are costs or benefits to society or the environment. Include at least four (4).) (1 mark) (c) Identify the stakeholders who would be affected if the above proposal to relocation of the Foleo Group's manufacturing operations was approved and explain how each would be impacted. (HINT: You should identify at least four stakeholders and explain the impact on each of them.) (0.8 mark) (Award 0.2 mark for each pair of identified stakeholder and impact explanation up to a maximum of 0.8 mark)